Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions

Abstract

Purpose

The purpose of this paper is threefold: first, testing the relationships between internal marketing and employee satisfaction; second, investigating the links between employee satisfaction and perceived organizational performance; and finally, testing the relationship between internal marketing and perceived organizational performance.

Design/methodology/approach

Data were collected from 419 employees working in 53 microfinance institutions (MFIs) in Kivu (DR Congo). Data processing was performed using structural equations modeling through LISREL 9.1.

Findings

The results revealed that there is a positive and significant relationship between internal marketing and employee satisfaction. The results also revealed that there is a positive and significant relationship between internal marketing and perceived organizational performance. However, no significant relationship between employee satisfaction and perceived organizational performance was identified.

Research limitations/implications

There is a need to conduct a large qualitative survey aiming to understand why MFIs apply internal marketing and marketing practices in general. The results from such a study would serve to prepare a global quantitative study, which integrates in the same model internal marketing, external market orientation, employee job satisfaction (EJS), and organizational performance.

Practical implications

Results invite MFIs managers to change their mind and focus more on their employees. In fact, employees generate the most cost in general but they can also contribute to sustain growth and profitability. This is possible if they are better rewarded for their efforts.

Originality/value

This study links internal marketing, EJS and perceived performance in a sector and country which have been less or not studied in the marketing sector.

Citation

Kanyurhi, E.B. and Bugandwa Mungu Akonkwa, D. (2016), "Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions", International Journal of Bank Marketing, Vol. 34 No. 5, pp. 773-796. https://doi.org/10.1108/IJBM-06-2015-0083